Simon Moulden - CT&VAT (Acting Chair)
Michael Christy - CT&VAT (Secretary)
Jennie Jones – CT&VAT
Carol Lunney – CT&VAT
David Lewis – Powers Review
Sebastian Hordern (CBI)
Ian Young (ICAEW)
Chas roy-chowdhury (ACCA)
Sacha Pertwee (CIOT)
Richard Baron (IOD)
Lakshmi Narain (CIOT)
Donald Drysdale (ICAS) – took part via telephone conference
1. Welcome by Simon Moulden. Apologies were received from Alex Hardaker (Chair), Carolyn Fisher (ICI), Steve Coad (CT&VAT) and Ruth Paynter (CT&VAT).
2. HMRC gave a short presentation on both modernising powers and interest harmonisation.
3. HMRC discussed the impact of interest harmonisation on Corporation Tax.
4. HMRC also gave an overview of late filing/late payment penalty and pointed out to the representatives that the necessary draft legislation is on HMRC website and invited comments from the representatives.
5. Representatives raised concern regarding what constitutes a valid Corporation Tax return for penalty purposes and wanted some clarification from HMRC on this point. HMRC agreed to consider this as an action point and report back at the next meeting.
6. HMRC provided representatives with a brief update on the current open enquiry cases and highlighted the difference between full and aspect enquiries.
7. HMRC confirmed that if the enquiry is full and the accounting period ends before April 2008 then the old associated company rules have to be considered.
8. HMRC said that this review is focussing on associated companies rules as they apply to access to the small companies rate of Corporation Tax. HMRC confirmed that they are still in discussion with external tax representatives regarding the ways to simplify the current rules.
9. HMRC will be meeting with the representatives next week to discuss this matter further and said that they will provide further update on this at the next CTOCC meeting.
10. HMRC provided a brief update regarding the CTCG simplification review and confirmed that they are in the process of exploring a number of potential reforms with external tax representatives. Again, HMRC will provide further update on this at the next CTOCC meeting.
11. HMRC said that they have recently published a consultation document regarding the future of ESCs and encouraged members to respond to the consultation document.
12. HMRC also said that there are three Corporation Tax ESCs (ESC B49, C10 and C16) on which HMRC are keen to hear views from the representatives on suitable legislative framework. HMRC said that they will be writing to the representatives regarding this in due course.
13. There was a brief discussion regarding XBRL and the CT online filing. HMRC reminded representatives that filing online using XBRL would be mandatory for all returns due after 1 April 2011.
14. HMRC also said that as part of the online filing design stage they are working with agent representative bodies, Companies House and third party software providers.
15. Some members raised concern regarding online filing and large companies. In response to this HMRC said that they are working with the 'Big 4' to discuss large company issues.
16. HMRC said that they would be happy to provide a further update to members at the next meeting.
17. HMRC confirmed that all necessary documents regarding the enquiry windows and groups have now been published on HMRC website. HMRC requested feed back and comments from the representatives.
18. There was a brief discussion regarding Research and Development (R&D) tax credits. Some members wanted further clarification in relation to SMEs and R&D. It was agreed that the relevant member will write to HMRC setting out his concerns so that HMRC could respond in full.
19. It was provisionally agreed to hold the next meeting after the Budget.
